The gas prices in the U.K. have more than quadrupled compared to last year’s prices, which is the primary indicator of the U.K’s energy crisis.
As the energy crisis worsens and meat producers struggle with a carbon dioxide supply shortage, U.K. Business Secretary Kwasi Kwarteng warned that the coming days will be difficult.
“The next few days are going to be quite challenging,” Kwarteng told Sky News. “This is very serious.”
Gas prices are rising, energy companies are at risk of going bankrupt, and the customary systems for protecting customers from the chaos aren’t working, implying that government assistance will be required. Meat producers are warning they have just days of carbon dioxide supply left, threatening additional problems in food supply chains that are already strained by labor shortages. In addition, a cable that was knocked out last week after a fire at a converter station will not go back online for another month, adding to the pressure on energy prices.
National Grid announced late Monday that half of the IFA-1 U.K.-France line’s capacity will reopen on Oct. 23, a month later than expected. However, it is not likely to reach the full capacity of 2,000 megawatts until late March of next year.
With rising prices putting pressure on suppliers, the government must prevent a chain reaction of bankruptcies that would disrupt markets and consumers. Companies are looking for government assistance.
Following a longer and colder winter than typical, Europe is experiencing a gas crisis, with Russia restricting supplies to the continent. More shipments of the fuel have also been brought to Asia, keeping the market tight. According to the regulator in the United Kingdom, rising energy prices have forced five suppliers to go bankrupt in the last few weeks.